Is Cuba ready to open up to foreign investment?

http://www.bbc.com/news/world-latin-america-26807489

       Recently, Cuba's deputies approved a new law to help Cuba attract more than $2bn a year in investments and help treble economic growth to 5-7%. Officials have said the new law would offer foreign investors tax breaks and guarantees against expropriation. A British businessman said "The new law looks very promising as a strong incentive for foreign investment."

       Like we already discussed in class, one way to improve the standard of living is to attract more foreign direct investment. Cuba's new law is aimed at boosting their economy while preserving their independence and sovereignty.

       Now, university students in Taiwan have occupied the parliament to against the trade deals with China that will allow more investment into Taiwan by China as part of the ECFA FTA between China and Taiwan. I think trade can make both parties better off. It will stimulate Taiwan's business to be more competitive. 

The Dollar Value of an Extra Year of Life

http://economix.blogs.nytimes.com/2014/03/28/the-dollar-value-of-an-extra-year-of-life/?ref=economy

There is a new treatment of Hepatitis C that the manufacturer charges $1,000 a pill, adding up to $84,000 for a 12 week treatment. This has caused a lot of controversy because it would drastically raise the price of public insurance programs, to the point where people have protested in the streets of San Francisco. The drug would also place a pretty heavy burden on a lot of people that will never need treatment, which isn't very fair.  It is being argued that the cost of the drug is far too high for the additional total quality of life that it would provide, and should not be used as the primary drug.

Is walmart Serious about boosting the minimum wage

The largest retailer in the world employs about 1% of all private sector workers in the U.S.A. and is taking a neutral stance on the debate over minimum wage. Walmart says that they will only oppose the bill if it unfairly targets them. Otherwise they will remain neutral. It will be interesting to see how the world's largest retailer will react to the puch for a higher minimum wage.Will they be a leader and support the raise in minimum, or will they be a detriment  to the success of millions?

http://features.blogs.fortune.cnn.com/2014/02/21/wal-mart-minimum-wage/?iid=SF_BN_River

"Markets are rigged"

During an interview on 60 minutes, Michael Smith explained his reasoning for calling the U.S. markets "rigged". "The United States stock market, the most iconic market in global capitalism, is rigged ... by a combination of the stock exchanges, the big Wall Street banks and high-frequency traders," he said. He says that everyone who has any investment at all in the U.S. markets are the victims. The Idea is that the insiders are able to move faster than you and play it against orders in ways you don't understand. What are your thoughts on this? Are the U.S. markets truly rigged?

March Stocks: In like a lion, out with whiplash

For the start of the 2014 year stock trading has been choppy in a lot of ways. The majority of these problems have been centered around the crisis in Ukraine but also the anticipation for a hike in the interest rates by the FEDs. There is hope that this will soon smooth out with the release of manufacturing, construction spending and auto sales numbers due out this week. This will hopefully inform investors about the recovering of the United States economy and promote investment into the market.
     Regardless of the slow start to the 2014 year there has been significant recovery seen in many areas. Hiring picked up significantly in February with about 175,000 jobs being added. Another bright spot can be seen in the construction sector which really picked up these past few months. However there is still hesitations of further economic growth due to the possible volatility around the European Central Bank.



http://money.cnn.com/2014/03/30/investing/stock-market-lookahead/index.html?iid=HP_LN

Chairman moves on expired tax breaks

This article is discussing the current issue that is occurring in the Ways and Means Committee.  The committee, headed by Dave Camp (R-Mich), is working on the extension of tax credits and regulations that expired during the fiscal cliff.  He is looking to continue to stimulation of the economy by bringing back and/or making permanent the credits and exemptions that apply to items like research and development and alternative energies.  This action is being supported by the Obama administration and similar actions are being looked at in the Financial Committee in the Senate.

Yasou: Greece Is Pulling Off an Amazing Recovery

http://www.businessweek.com/articles/2014-03-27/yasou-greece-is-pulling-off-an-amazing-recovery#r=nav-r-story

Just two years ago, Greece was on the ropes. The yield on the Greek government’s 10-year debt hit a punishing and unsustainable 30 percent. Today the yield is less than 7 percent—a sign that investors are increasingly confident of the nation’s ability to pay its debts. Rarely has a country repaired its image with creditors so quickly. What went right is that the troika of foreign official lenders gave the Greek government inexpensive loans so that it never had to borrow at those exorbitant open-market rates. And the Greek government was surprisingly successful at cutting spending, which was essential to regaining investors’ confidence. The Hellenic Republic managed to achieve “primary” balance—that’s when revenue exceeds spending, excluding debt service—a year ahead of schedule. Still, Greece continues to face enormous challenges. The main one is that belt-tightening isn’t enough. Greece must also remove subsidies and barriers that protect politically entrenched interests while costing the general public and inhibiting growth. So it’s not all good news out of Greece. But there’s no question that the country is better off now than when its bond yields were at 30 percent.

5 Things to Watch on the Economic Calander

http://blogs.wsj.com/five-things/2014/03/28/5-things-to-watch-on-the-economic-calendar-10/

This article talks about 5 big things that are coming up that will impact the economy.

1. "This Payrolls Report Should Be Frost Free"--meaning, that this payroll should be clear of weather issues, unlike the past three months.  Because the weather this month has been a little better, not as many people have been missing as much work.
2. "Has the Participation Rate Stabilized?"--this section talks about how the retirement of some of the baby boomers generation has stabilized the labor force rate.  So, instead of a constant drop, increasing the unemployment rate, everything has become a little better (at least in the way it looks).
3. "Vehicle Sales Should Rev Up"--because the weather is getting better more people are willing to go out and buy cars.  Not only will vehicle sales increase, but other sales will increase because with better weather, people are more willing to go out and shop more.
4. "Taking Business's Temperature in March"--this section talks about how manufacturing has slipped because of the abnormally cold temperatures in the past few months as well as car sales.  Both are expected to increase in the near future because the weather should be getting better.
5. "Oil Deficit Continues to Slide"--there has not been a huge worsening in the trade deficit of the United States because of the narrowing in the oil deficit.  The US is importing less oil now than it did the past few years.

Teens face toughest job market on record

 

 

 

     http://money.cnn.com/2014/03/14/news/economy/youth-employment/index.html?iid=SF_E_River               

       

 

  The article said that of the students who completed high school in 2012 but didn't immediately go on to college, 70% tried to get a job but less than half (46%) succeeded in finding one.  This data is historically low. The  economic condition  affects younger job market. However, long term unemployment mostly consist of older people right now. I think the distribution of the long term unemployment  will be a littele bit changed because younger people began to suffer from finding their jobs.   

 To solve this problem, the Brookings report blames that we should create stronger linkages between school, college and work in this article.  I agree with a part of that idea.   The situation that only 14 % high school student will earn a bachelor's degree should be improved.   As the writer said, the high school program does not work as preparation for college.  However, the school is not for the company. I mean it is true students who graduate from a high school or   university have to get a job soon, but the school should not be just the preparation for the Job market.  If the university only focus on the rate of how many people get good job, the school will lost the idea of what is the education.

 Now, at least employment rate of student who can earn a bachelor's degree  is not so bad ,compare with  high school diploma, so the government should focus on improving high school program.

 

 

 

Protesters occupy Taiwan parliament over China trade deal

http://www.bbc.com/news/world-asia-26641525

This article states that university students have occupied the parliament of Taiwan illegally in protest to the trade deals with China that will allow more investment into Taiwan by China as part of the ECFA  FTA between China and Taiwan.
Many Taiwanese citizens oppose the deal politically because of fear of closer ties with China which will undermine their national sovereignty, as well as economically. Many fear that when China's businesses come in, this will put many Taiwanese businesses, especially small businesses out of business. They are also afraid that it will be easier for Chinese labor to cross the border and find jobs. This will put many people out of work as Chinese labor is cheaper.

What do you think about this trade deal? Will it truly harm Taiwan more than it will benefit Taiwan? Or is this trade deal necessary for a small open economy like Taiwan where exports is its main source of National Income?